Rosenthal & Rosenthal completed several factoring and asset based lending deals for food & beverage companies.
A well-known bakery business based in New York was looking for an alternative lender after a frustrating experience with tier 1 banks. With annual sales of $55 million, the company was well established, with existing relationships with big box retailers like Walmart and Costco as well as Target, Kroger, Wegmans and Shoprite. In addition to their robust wholesale business, the company also sold their products to their 100 franchise stores. At the direction of their advisors, the company connected with Rosenthal, who provided a $9 million total credit facility, consisting of a revolving line of credit and a term loan.
“We were able to take the time to really understand the company’s position and their needs,” said Robert Schnitzer, SVP of Business Development for Rosenthal’s Asset Based Lending division. “Ultimately, our flexibility and persistence made Rosenthal a great fit and partner.”
A popular and fast-growing ready-to-drink beverage company based in Massachusetts was seeking an incremental working capital facility to support its plans to increase distribution nationwide. The client was growing rapidly, with sales doubling year over year since the company launched in 2019. In a sponsor-backed deal with a consumer-focused private equity fund, Rosenthal’s Pipeline division was able to provide a $3.5 million facility against receivables and inventory to support the company’s aggressive growth plans.
A rapidly growing Latin American-based Mexican food company was also experiencing rapid growth and required additional working capital. The company was being backed by a highly successful entrepreneur and sales were skyrocketing from relationships with major retailers and grocers like Whole Foods, Target and Kroger. Rosenthal’s Pipeline division stepped in to provide a $1.5 million facility, lending against receivables and inventory, which helped to support the client’s working capital needs.
“We are pleased that Pipeline is able to back fast-growing, emerging brands in the food and beverage space and across the consumer sector to help them expand their product lines and build up their inventory,” said Andrew Barone, Director of Sales for Rosenthal’s Pipeline division.
In addition to the Pipeline deals, Rosenthal closed an additional transaction with a Colorado-based e-commerce coffee company that was looking to expand into wholesale. The company was referred to Rosenthal when it landed a large order from a national grocery chain and required a working capital facility to cover the initial orders as well as ongoing replenishment orders. Rosenthal was able to quickly intervene and closed a $1 million recourse factoring deal within days, allowing the client to meet the delivery windows for the first shipments.
“Because we are able to move quickly without unnecessary red tape, the company was able to immediately take advantage of this large order and is now well positioned to add more wholesale customers in the future to support their growth plans,” said Leigh Lones, Rosenthal’s Head of Recourse Factoring.